Ethereum experienced a drop of over 11% in the last 24 hours. Let's analyze the key factors behind this decline and perform a market technical analysis.
Macroeconomic Factors and Market Sentiment
The global economy is facing uncertainty following recent tariff impositions by U.S. President Donald Trump. These measures have led to fears of a global trade war and inflation, affecting the cryptocurrency market similarly to the March 2020 crash. Market liquidations play a significant role, with over $240 million in ETH liquidated within 24 hours.
Technical Analysis: Unpacking the ETH/USDT Chart
Technical analysis reveals bearish signals for Ethereum. The chart highlights a downward movement from the recent peak at $3,900. A break below the trendline indicates a potential further correction. The 200-day EMA at $2,904 acts as dynamic resistance. On the 4-hour chart, a channel suggests potential price recovery to levels $2,000–2,050.
Conclusions and Prospects for Ethereum
ETH's decline relates to a combination of macroeconomic factors and market sentiment. Recovery is possible if positive shifts in global trade or increased buying occur. The combined market cap of cryptocurrencies dropped by 5.6%, reaching $2.7 trillion.
Ethereum's market situation remains pressured by external economic factors and technical indicators. Future recovery will depend on numerous variables, including global economic conditions and shifts in market sentiment.
